Chapter-1

System
Concepts
 System
A system is an array of components that work
together to achieve a common goal, or multiple
goal,by accepting input,processing it ,and
producing output in an organized manner.

Example: Computer System(various components i.e.

Keyboard,monitor,memory chips,circuits and
connecting cables and basic goal is processing of a
data)
 System Analysis and Design(SAD)
It is the process of examining a business
situation with the intent of improving it through
better procedures and methods.

System Design: It is the process of planning a

new system or replace an existing system.The
main objective is to develop best possible
design as per the requirements.
System Analysis: It is the process of gathering
and interpreting facts,diagnosing problems
and using the information to recommend
improvements to the system.

System analyst plays important role in

system analysis.
 Characteristics of a system
• Specific Objectives.
• Components(subsystems).
• Organization(structure and order).
• Interaction.
• Interdependence.
• Integration(how a system is tied together).
• Behaviour(Instructions).
• Life cycle(every system has its life cycle birth,life
and death).
 Elements of System
• Outputs.
• Inputs(should be accurate,in proper
format,input on time).
• Processes.
• Control(decision-maker like management).
• Feedback(output is feedback to input,control).
• Environment(Govt.policies,vendors,competitors
).
• Boundaries(Limits).
 Business System Concepts.
Business organisation refers to any
organisation which produces goods or services
for customers with an objective of gaining
profits.
Elements are:
1. Inputs 2. Outputs
3. Processor 4. Control
5. Feedback 6. Environment
Business organisation as a system:
 Subsystems of Business
A business is subdivided into a number of
subsystems:

1. Marketing and Purchasing Subsystem.

2. Production Subsystem.
3. Accounting Subsystem.
4. Personnel Subsystem.
5. Accounting Subsystem.
6. Management Subsytem.
 Types of Systems
1.Open and Closed Systems
Open system: System that interacts freely
with its environment.
Example: Business Organization.
Closed system: System that has no interaction
with its environment.
Example: Computer Program.
2.Deterministic and Probalistic Systems

Deterministic system: Behaviour of a this

system is completely known.
Example: Computer Program.
Probalistic System: Behaviour can not be
predicted with certainty,only estimates can be
given.
Example: Weather forecast.
3.Physical and Abstract Systems

Physical System: System that are tangible or

visible.
Example: Computer Hardware.
Abstract System: System that are conceptual or
nonphysical entities.
Example: Algorithm.
4.Man-Made information Systems
System that handles day to day activities in a
business as well as support the problem
solving and decision making needs of
management and users.
Types:
1.Formal Information System.
2.Informal Information System.
3.Computer bases Information System.
1.Formal IS:
Based on the organisation repersented by the
organization chart.
Types of Information:
1.Strategic Information(Top Management)
2.Managerial Information(Middle)
3.Operational Information(Lower level)
2. Informal IS:
Employee-based system designed to meet
personnel needs and to help in the solution of
work-related problems.
3. Computer-based IS:
Depends on the computer for handling
business applications.
Types:
1.MIS 2.DSS 3.TPS 4.OAS
 Important Questions
1.Define System and subsytem with an example.
2.Explain the various characteristics of a system.
3.Explain the various elements of a system.
4.Distinguish between:
(a) Open and closed systems.
(b) Physical and abstarct systems.
(c) Deterministic and probalistic systems.
5.What are the various types of information.